Algerian gas project hits success line, as first gas is produced
The Groupement Reggane Nord (GRN) consortium, of which DEA is part with a 19.5% stake, announced that production from four out of six Reggane Nord gas fields commenced successfully on Dec. 13, 2017. The first wells have been put in production. A total of ten wells are planned to come on stream in the coming few days. A ramp up of production commenced targeting a flow rate of more than 280 MMcfd (DEA share: 55 MMcfd, which corresponds to about 9,000 boed).
“Reggane Nord is the first gas project that has been brought into production from this prospective region in the south west of Algeria. The oil and gas sector is the backbone of the Algerian economy and the gas from Reggane will contribute significantly to the development of the country’s energy sector as well as to DEA’s further growth. We are pleased that the Groupement has reached the first gas milestone,” says Thomas Rappuhn, CEO of DEA Deutsche Erdoel AG.
“All members of the Reggane project team have done an excellent job in order to achieve the production launch. DEA is proud of being an active partner in this project,” says Sameh Sabry, General Manager of DEA Algeria.
With first gas, the commissioning period started in which the performance of the constructed Gas Treatment Plant will be tested and the new built GR5 national gas transport pipeline will be filled with the gas from Reggane Nord.
The project scope is including drilling, completion and tie-in of 18 new development wells already drilled, plus the completion and tie-in of 5 existing exploration-delineation wells, in addition to further wells to be drilled beyond first gas. This will ensure the targeted sales gas plateau rate.
Background Reggane Nord project
Field development in the Algerian Sahara is being carried out by the joint company “Groupement Reggane Nord” (GRN), which has been established by the project partners especially for this purpose. The Groupement Reggane-Nord (GRN) partners are DEA Deutsche Erdoel AG with its 19.5%-share, the Algerian enterprise Sonatrach (40%), Repsol (29.25%) as licence operator and Edison (11.25%). Reggane Nord is located in the Reggane basin of the Algerian Sahara desert.
Exploration activities started in 2002. The Field Development Plan was approved on Nov. 30, 2011, followed by the foundation of the Groupement Reggane Nord and the start of field development in 2012. The Reggane Nord project comprises of six dry gas fields of Reggane, Azrafil Sud-Est, Kahlouche, Kahlouche Sud, Tiouliline and Sali.
The scope to first gas included design, construction, commissioning and start-up of the Central Processing Facilities (CPF) including a Gas Treatment Plant (GTP), a gathering network (flowlines, trunklines, manifolds) to connect the wells to the GTP, a Gas export pipeline (approx. 74 km) from the GTP to the new built GR5 national gas transport pipeline as well as a Living Base and Security Camp.
The production phase of the project is expected to span about 25 years.